Overview of the Construction Materials Industry

One major area of wholesale distribution is the Construction Materials Industry. The construction materials industry includes suppliers of the raw materials used by construction firms when building commercial and residential properties. This means that basic materials such as aluminum composite panel, iso foam pin, concrete and cement in addition to wood, lumber, wood paneling and mill work products fall into this category. Additionally, distributors also supply roofing, guttering and insulation products.

Challenges Within the Industry

While the future of the market appears bright, the industry is highly competitive, and there is a specific set of challenges that threaten distributors.

There is a secondary market with associated products for the sector such as glasswork, wire and fencing are also supplied. With such a wide variety of products within the construction materials industry, it becomes very important for wholesale distributors to exercise good stock control to maintain profitability. The construction and building materials industry is often difficult to track because it is wholly dependent on the trends of the building industry.


Fortunately, a rise in urbanization and expanding industry coupled with a growing population and economic growth has seen the sector grow considerably. It is predicted that the global industry in construction supplies will reach US $1.1 trillion by 2020. (Source)